GM suspends outlook for 2020 and will withdraw $16 billion of credit line

General Motors said Tuesday that it will withdraw about $16 billion from its credit lines in an attempt to increase liquidity amid the growing impact of the coronavirus outbreak on its business. The U.S. automaker, which also suspended its outlook for 2020, said it was evaluating its quarterly dividend but has not yet decided to suspend it. At the end of 2019, GM had $34.6 billion in liquidity, including $17.3 billion in cash. "We are aggressively taking austerity measures to save money and we are taking the necessary steps in this environment of change and uncertainty to manage our liquidity," said Chief Executive Mary Barra. Last week, rival Ford abandoned its outlook for 2020 and said it withdrew $15.4 billion from two lines of credit to bolster its balance sheet. Analysts believe corporate liquidity is critical and U.S. automakers have balance sheets strong enough to withstand the impact of the outbreak. Meanwhile, demand for new vehicles in the U.S. fell 13 percent in the first 19 days of March, according to research firm JD Power, while Morgan Stanley expects car sales to fall 9 percent this year, the first drop in many years.